Kefi Minerals, Managing Director, Mr Harry Anagnostaras-Adams said “Work continues methodically to prepare for the Tulu Kapi Project development and now includes the final preparations by the Ethiopian equity investment syndicate. The widespread positive atmosphere in Ethiopia is a notable turnaround from that seen during the state of emergency that was lifted in early June 2018 upon the appointment of the new Government.”
KEFI Minerals plc (LON:KEFI), the gold exploration and development company with projects in the Federal Democratic Republic of Ethiopia and the Kingdom of Saudi Arabia,today reported that its preparations for the development of the Company’s Tulu Kapi Gold Project continue in earnest with the recent appointment of the Head of Project Implementation, his construction oversight team and the commencement of their engagement with the principal Project contractors Lycopodium and Ausdrill.
On the financing front, the planned Project-level equity investment by a local syndicate is the next key milestone and this remains on track for the syndicate to provide its planned US$30 million equity investment to complement the US$20 million equity investment by the Government of Ethiopia, leaving KEFI with a c. 54% interest in the Project, as described in the Company’s announcement on 11 June 2018. In aggregate with equity already invested in the Project, total Project equity capital investment is expected ultimately to exceed US$110 million.
Recent political developments within Ethiopia also complement the country’s positive progress as one of the world’s highest growth countries. For instance, last week a reconciliation was signed between the Federal Government of Ethiopia and the Oromia Liberation Front, to end a long-running friction, another positive factor for our Oromia-based Project.
